With a company valuation of over $164 billion, Netflix has surpassed Disney as the most valued media company in the world .Big data has helped Netflix massively in their mission to become the king of stream.

Netflix is a data-driven company.

So, how does Netflix use data analytics? They collect the data from their 151 million subscribers, and implementing data analytics models to discover customer behavior and buying patterns. To collect all the data and turn this data into meaningful information Netflix requires data analytics.By using the collected data, Netflix can create a detailed profile on its users .

Netflix knows the time and date a user watched a show, the device used, if the show was paused, does the viewer resume watching after pausing? Do people finish an entire TV show or not, how long does it take for a user to finish a show and so on.

Netflix even has screenshots of scenes people might have viewed repeatedly, the rating content is given, the number of searches and what is searched for.

They use these information to recommend movies and TV shows based on their subscribers’ preferences.

Traditional television networks don’t have these kinds of privileges in their broadcasting.

According to Netflix, over 75% of viewer activity is based off personalized recommendations. Recommendation system actually influences 80% of the content we watch on Netflix.

By analytics Netflix gain the insights into their User all over the world and then they optimize their marketing and deliver a better product to their users.

Netflix uses Big Data analytics to optimize the quality and stability of its video streams with viewing pattern.

According to Netflix, they earn over a billion in customer retention because the recommendation system accounts for over 80% of the content streamed on the platform.

Netflix also uses its big data and analytics tools to decide if they want to green light original content

It Uses big data and analytics to conduct custom marketing.

Through their analytics, Netflix may know how much content users need to watch in order to be less likely to cancel .

“If we can get each user to watch at least 15 hours of content each month, they are 75% less likely to cancel. If they drop below 5 hours, there is a 95% chance they will cancel.”

April 2017, Netflix released new Rating System. Previously, users would rate movies and TV shows on 1-5 stars. But after their product teams ran some tests, they found a new, simpler “thumbs up-thumbs down” test beat the original star-based rating system.

The prediction systems powered by algorithms know what we prefer to watch before we do.